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Homework: M5: Chapter 31 Homework Save Score: 0 of 1 pt 4 of 9 (0 complete) D HW Score: 0%, 0 of 9 pts P31-7 (similar to) Question Help The dollar cost of debt for Coval Consulting, a U.S. research firm, is 8.7%. The firm faces a tax rate of 28% on all income, no matter where it is earned. Managers in the firm need to know its yen cost of debt because they are considering a new bond issue in Tokyo to raise money for a new investment there. The risk-free interest rates on dollars and yen are Is = 5% and fy = 0.8% respectively. Coval Consulting is willing to assume that capital markets are internationally integrated and that its free cash flows are uncorrelated with the yen-dollar spot rate. What is Coval Consulting's after-tax cost of debt in yen? (Hint: Start by finding the after-tax cost of debt in doll nd then finding the yen equivalent.) The after-tax cost of debt in dollars is %. (Round to two decimal places.)